Express the target costing relationship in equation form. How does this equation differ from the two...

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Express the target costing relationship in equation form. How does this equation differ from the two other types of traditional equations relating to cost reduction? Why is this significant?

David · Accepted Answer

Express the target costing relationship in equation form. How does this equation differ from 
the two other types of traditional equations relating to cost reduction? Why is this 
significant?
The target costing relationship is expressed as follows in the equation:-
C= S- P
Where, C is the target cost 
 S is the target selling price,  
P is the target profit margin.

Express the target costing relationship in equation form. How does this equation differ from the two other types of traditional equations relating to cost reduction? Why is this significant?

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